Hey, I’m curious to know what tools, websites, or services you use to find undervalued stocks? I’m not looking for professional advice, just what has worked for you. Share your experiences, please.
When I buy a stock that I think is undervalued, it somehow becomes even more undervalued. So much so that I usually lose my investment. It’s really something.
Darin said:
When I buy a stock that I think is undervalued, it somehow becomes even more undervalued. So much so that I usually lose my investment. It’s really something.
Yeah, that’s the way it goes sometimes
@Chancey
But honestly, I just stick to index funds with about 90% of my money. The other 10% is for fun. You’ll see over time that the index funds do the best.
I love gaming, so I bought some shares in Nvidia years ago. But, honestly, I just stick to companies I know well, and the rest of my money goes to VOO.
From my experience, stocks that seem ‘undervalued’ usually have bad sentiment around them. You’re basically betting that things will turn around. It’s risky, but it can work.
I only invest in companies from sectors I really understand. I compare them and choose the best one based on how the sector is doing. Don’t invest in companies you don’t get.
Here’s the thing, if we all use the same tool to find undervalued stocks, and everyone buys them, they stop being undervalued.
Blakeley said:
Here’s the thing, if we all use the same tool to find undervalued stocks, and everyone buys them, they stop being undervalued.
If the tool is good, it should show when the stock is no longer undervalued. For example, RSI (Relative Strength Index) shows if a stock is overbought or oversold. When a stock has strong financials and a low RSI, more people might buy in until it’s no longer considered oversold. But of course, it’s not foolproof. Publicly available tools can already show undervalued stocks.
I just use a Magic 8 ball.
I like Avantis’ value funds like AVUV.
Riley said:
I like Avantis’ value funds like AVUV.
Yeah, I was about to say that too. They help me find the undervalued and profitable stocks.
I look at the SP500 heat map and check out each sector. I eliminate the bad ones and then start small recurring investments in a couple of stocks from each sector. If a stock goes below my cost, I look deeper into it and decide if I want to buy more or not.
I also do a lot of ITM debit call spreads. It’s worked for me, but I’m picky about it. I usually look for .9-.95 delta bought and .85 delta sold.
My goal is to have a cost basis close to the 200MA on good stocks. If I wasn’t as active with trading, I’d skip options and just do recurring investments and let it grow. By the way, most of my positions pay dividends. I’m not really into stocks that don’t.
Here’s the simple part: you don’t really need to.
I just use the WSB community watchlist, lol.
I use heavy skepticism and DCF (Discounted Cash Flow) analysis. I make sure there’s a margin of safety. I only do things I think I can understand and estimate the cash flows. If I don’t get the business, I pass on it. Sometimes, a business has that ‘x factor’ that can’t be measured, but you still need to pay the right price for it.
I focus on stocks with good fundamentals and solid long-term performance. The P/E ratio is a good way to spot good buys. Right now, chip stocks are down because of the recession and lower demand, especially with China making their own chips. The market’s too invested in tech and it doesn’t have much room to go up.
I watch what the big players are doing. I found KULR when it was trading at 0.25 a share and noticed Vanguard was a major holder. I bought 400 shares and sold at 0.35. I was banging my head when it went up to 0.49. Always look at what the experts are doing.
I also use apps that track trades by government officials; they’re almost always spot on since they have insider info. Schwab has a good filter to find stocks in breakout periods using Bollinger Bands. Breakouts can go up or down, so it’s not foolproof, but many of my wins this year started from stocks I found using that method.
@Terry
So after all that, you missed out on about $60 of gains on the KULR. Don’t worry about it too much, it’s not a big deal.
Harley said:
@Terry
So after all that, you missed out on about $60 of gains on the KULR. Don’t worry about it too much, it’s not a big deal.
Lol, yeah… I just move on from it.